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The government has been urged to spend more time and consideration on the design of the demand side response (DSR) elements of the capacity market, by a cross-industry group.
SmartGrid GB and law firm Bird & Bird, claim in a new report that a failure by the government to delay the DSR design schedule risks “negatively affecting a potentially vibrant DSR market in Britain”.
They have claimed more time is needed for “further consultation with industry” and that “key assumptions should be tested further”.
The report also recommends that the government should offer “a variety of DSR product arrangements” within the capacity market.
Robert McNamara, executive director at SmartGrid GB, said: “There are concerns that the complexity of the capacity market has not been taken into account.
“Whilst industry agrees that work on DSR aspects of the capacity market must start now, it believes an extended timeline should be adopted to ensure that the initial design of the DSR aspects of it are appropriate.”
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